car news

This is how high the average loan is for a car

February 25, 2023

Cars are getting more and more expensive. With that, we’re not telling you anything new. Apart from general inflation, the government’s bpm causes the price of new cars to travel sky high. The average new price of cars sold in the Netherlands in 2022 was a whopping 43,072 euros. A sharp increase over previous years.

Buy a second-hand one then? That saves a lot of money, but even that is no longer really advantageous. Indeed, never before have occasions been so expensive. In 2021, you already spent an average of 21,376 euros for a used car in the Netherlands, and that amount has only continued to rise.

Borrowing increasingly popular

Of course, you can lease a car to spread out the amount, but in the long run it is not always more advantageous. Moreover, for many it is also a nice idea when the car is really yours. Only, in addition to higher car prices, consumers also have less savings than before. So direct purchase is not always a possibility. All this is causing more and more people to opt for a loan to buy a car. The number of auto loans is increasing by nearly 11 percent over the past year.

There are two types of auto loans: a personal loan or a revolving credit. That first form appears to be the most popular among consumers. This is because a personal loan has a fixed term and interest rate. So that gives additional certainty about future monthly payments.

This is how high the average car loan is

Not only are more and more people borrowing, but the amount per loan is increasing. And hard, too. That’s according to figures from comparison site Becam. In 2021, their customers still borrowed an average of 16,592 euros to buy a car. By 2022, that amount had risen to an average of 19,366 euros. An increase of nearly 17 percent!

Interest rates are also rising…

Most loans last year were closed in the second quarter. This has to do with interest rates, which have also risen significantly during the rest of the year. At the beginning of the year, the interest rate was still at 3.45 percent. By the end of the year, the interest rate was 4.4 percent.

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